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In one day, Canada can manufacture either 200 tonnes of wheat or ninety tonnes of copper ingots. In one day, Chile can manufacture either 120 tonnes of wheat or 175 tonnes of copper ingots. Based on these numbers,
[A] Compute Canada's opportunity cost of one tonne of wheat.
[B] Compute Chile's opportunity cost of one tonne of copper ingots.
[C] who has a comparative advantage in producing copper ingots? Why?
[D] how many tonnes of wheat and how many tonnes of copper ingots will be produced if each country specializes?
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